Improving margins in the disaster preparedness and safety business through greater use of videoconferencing and a review of manufacturing costs

「一方で、安定的に受注を確保しているものの、案件ごとの納入時期および売上計上時期の関係により、当期の売上高は前期を下回りました。利益面では、売上総利益は前期並みとなったものの、販売費及び一般管理費が63百万円増加したため、セグメント利益は前期を下回りました。」

「On the earnings front, in addition to the carryover of high-margin projects, costs associated with investments for growth, including depreciation expenses arising from the start-up of a new plant for equipment related to subcritical water treatment, costs to secure personnel, and expenses related to the acquisition of shares in a subsidiary, were incurred ahead of the anticipated benefits.」

「In addition to the impact of higher manufacturing costs and other factors, profit margins deteriorated because common expenses of the Group, including selling, general and administrative expenses, are allocated based on their ratio to revenue.」

「As the Company rebuilt its sales channels and strengthened its sales structure, order acquisition stabilized and profitability improved, resulting in the segment recording a profit for the interim consolidated accounting period. Consequently, revenue in the disaster prevention and safety business was ¥449 million, up 148.9% year on year, and segment profit was ¥100 million, compared with a segment loss of ¥7 million in the same period of the previous year.」

「As a result, the business moved toward containing its cost ratio, and profit increased despite lower revenue. Consequently, revenue in the business for the nine-month period of the fiscal year under review was ¥295 million, down 11.6% year on year, while segment profit was ¥39 million, up 99.7%.」

「The impact of COVID-19 has gradually improved, and the installation of fire-protection equipment at hospitals and other facilities became somewhat more active, resulting in higher net sales. However, profit declined as related costs increased, including due to higher selling expenses such as the cost of outsourcing and implementing telemarketing for new customer development.」

「In light of these circumstances, the Company promoted remote sales activities, which helped reduce business-trip expenses, but this was insufficient to offset the impact of lower revenue, and performance remained sluggish.」

「In addition, the use of videoconferencing systems for sales reduced sales expenses related to visits and business trips to hospitals and nursing care facilities, while a thorough review of manufacturing costs resulted in higher profit margins.」